Japanese liner Ocean Network Express (ONE) has seen a vast 62% crash in its revenue for Q2, 2023.
In a statement, ONE outlined "weak general consumption and other factors" as the core reason(s) behind the decline.
ONE’s data shows a 92% decline in EBITA from Q1 and Q2 2022 to Q1 and Q2 2023, showing major drops in revenue figures year-on-year.
The financial report also shows a 97% drop in its net profit to $187 million, which is significantly lower than it was the same period last year.
ONE has outlined the present state of the East-West routes have softened the supply and demand balance resulting in stagnant freight levels.
Cargo movements from Asia to North America during July-September fell by 7.5 per cent year-on-year.
Cargo movement temporarily picked up in the peak season, but the speed of inventory adjustment was slow and sales of general consumer goods stagnated which resulted in sluggish growth.
ONE implemented several measures aimed at increasing profitability and reducing vessel idling times caused by blank sailings, including optimising tonnage deployment in each trade by deploying newly built vessels, lowering bunker consumption through slow steaming, and optimising cargo mix in each trade.
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